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A second mortgage typically refers to a secured loan (or mortgage) that is subordinate to another loan against the same property mortgage second. .
In real estate, a property can have multiple loans or liens against it mortgage second. The loan which is registered with county or city registry first is called the first mortgage or first position trust deed mortgage second. The lien registered second is called the second mortgage mortgage second. A property can have a third or even fourth mortgage, but those are rarer mortgage second.
Second mortgages are called subordinate because, if the loan goes into default, the first mortgage gets paid off first before the second mortgage mortgage second. Thus, second mortgages are riskier for lenders and generally come with a higher interest rate than first mortgages mortgage second.
In most cases, a second mortgage takes the form of a home equity loan and the two are synonymous, from a financial standpoint mortgage second. The difference in terminology is that a mortgage traditionally refers to the legal lien instrument, rather than the debt itself mortgage second.
The term length of a second mortgage varies mortgage second. Terms can last up to 20 years on second mortgages; however repayment may be required in as little as one year depending on the loan structure mortgage second.
A second mortgage can occasionally be the catalyst to foreclosure when a homeowner defaults on their loan mortgage second. The second lien holder then purchases the primary mortgage (which may still be in good standing) and then forecloses which leaves the homeowner losing their home to the 2nd mortgage lender mortgage second.

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December 20th 2007 Posted to   Pills